Kinship Care vs Foster Care in Saskatchewan: Key Differences

Same Child, Very Different Systems

When the Ministry of Social Services determines that a child cannot safely stay with their biological parents, two main placement streams exist in Saskatchewan: foster care with a licensed, unrelated foster family, or kinship care with a relative or close family connection. Both keep the child out of institutional care. But the legal framework, financial support, level of Ministry oversight, and long-term implications differ significantly.

If you are a grandparent or relative considering whether to formalize your care arrangement, understanding these differences helps you make informed decisions about which path to pursue.

Legal Status

Foster care: The child becomes a ward of the province, in the care of the Minister of Social Services. The Ministry holds legal authority over major decisions about the child's life, though foster parents handle day-to-day care. Biological parents' rights are suspended or significantly restricted during wardship.

Kinship care (PSI): Under a Person of Sufficient Interest order, the child is explicitly not a ward. The PSI caregiver becomes the sole legal guardian with full decision-making authority over health, education, religion, and daily routine. The Ministry's role shifts from managing the child's care to supporting the caregiver through maintenance payments and an annual review.

This distinction matters practically — a PSI caregiver can enrol the child in school, consent to medical treatment, and make parenting decisions without calling a caseworker for approval. A foster parent needs Ministry sign-off for many of those same decisions.

Financial Support

Foster care: Licensed foster parents receive basic maintenance rates covering food, shelter, clothing, and daily care, plus additional supports including training stipends, respite care, and skills-based payments for children with higher needs. The rates are set by the Ministry and paid through the Saskatchewan Foster Families Association.

Kinship care (PSI): PSI caregivers receive maintenance at rates tied directly to foster care basic maintenance — the base amount is the same. They also receive school fee allowances, holiday allowances, supplementary health coverage (drugs, dental, optical), and can apply for special needs rates and respite care.

The key financial difference is not in the base rate but in the extras. Foster parents may access additional placement-specific supports and training subsidies that PSI caregivers do not automatically receive. On the other hand, PSI maintenance is completely non-means-tested — your pension, employment income, or savings do not reduce the payment.

Oversight and Caseworker Contact

Foster care: Ministry caseworkers maintain regular contact with the foster family. Home visits, case conferences, and placement reviews happen multiple times per year. The Ministry actively manages the placement.

Kinship care (PSI): Oversight is deliberately lighter. The child is not a ward, so the Ministry conducts one annual review — a home visit to evaluate placement stability, review the Extended Family Support Agreement, and update the cultural connection plan for Indigenous children. Between reviews, contact with the Ministry is minimal unless the caregiver reaches out.

The 2023 Advocate for Children and Youth report flagged this lighter oversight as a concern, noting that evolving needs can go unaddressed between annual reviews. The Ministry's PSI Action Plan (2024–2027) aims to strengthen the review process.

Tax Treatment

Foster care maintenance: Non-taxable under paragraph 81(1)(h) of the Income Tax Act.

PSI maintenance: Also non-taxable under the same provision. Both types of payment are financial assistance for the care of a child under a provincial statute.

Neither affects your eligibility for Old Age Security, the Guaranteed Income Supplement, or CPP retirement benefits.

Impact on the Child's Federal Benefits

Foster care: The Ministry claims the federal Children's Special Allowance directly. The foster parent cannot receive the Canada Child Benefit for the child.

Kinship care (PSI): Same rule applies — when the Ministry pays maintenance, they claim the Children's Special Allowance, and the caregiver cannot receive the CCB.

Informal kinship care (no court order): If you are caring for a child without any Ministry involvement, there is no provincial maintenance — but you can claim the CCB by proving primary caregiver status to the CRA.

Transition at Age 18

Eligible youth who were permanent wards may access transitional support services through the Ministry up to age 21, including help with housing, education, and living costs.

PSI maintenance ends on the child's eighteenth birthday. The Ministry declined the 2023 ACY recommendation to extend PSI support to age 21, on the basis that the PSI order expires at 18; other benefits may continue if the young person independently qualifies.

This cliff is one of the most significant practical differences between the two systems and something every PSI caregiver should plan for well in advance.

Which Path Makes Sense

The choice is not always yours — if the Ministry has found the child in need of protection and proposes a PSI arrangement, that is the path offered. But understanding how kinship care compares to foster care helps you know what to expect and what to advocate for. Our Saskatchewan Kinship Financial Help Guide covers both pathways and maps the financial support available under each arrangement.

See more Saskatchewan guides →